Tag Archives: Quality Alerts

ACA Calculation Concerns — Message from IRS

Background Scenario 1:   On Thursday, March 9 (7am) through Friday, March 10 (5am), TaxSlayer identified that the software was generating calculation errors in the section of ACA.  Issues identified by TaxSlayer were as follows:

  • Shared Responsibility Payment (SRP) was not calculating.
  • Form 8962, Premium Tax Credit (PTC) was not calculating the PTC Claim and Reconciliation of Advance Payment of PTC properly.

 Background Scenario 2:  On Friday, March 10 (5am) through Thursday, March 16 (10:30am), TaxSlayer identified that a specific e-file server was extracting ACA information that was included on returns when they were e-filed. Issues identified by TaxSlayer were as follows:

  • Shared Responsibility Payment (SRP) was calculating in the return, but not being included in the e-file.
  • Excess advance payments of the premium tax credit (APTC) was calculating in the return, but not being included in the e-file.

Information:  TaxSlayer determined the number of returns potentially impacted during this time period:

  • 116 returns were identified as those potentially impacted by SRP.
    • This is based on any member of the household having at least 1 month where they were not covered by insurance and there is no exemption.
  • 2,328 returns were identified where the taxpayer purchased insurance from the marketplace and the preparer entered a Form1095-A, Health Insurance Marketplace Statement.
    • This does not necessarily mean the refund/balance due was impacted, it could simply mean the reconciliation with the Form 8962 did not go in the e-file.
      • This could result in the taxpayer receiving a notice from IRS requesting a copy of the Form 1095-A
  • 2,279 returns were identified that went through the specific e-file server.
    • This does not necessarily mean the refund/balance due was impacted, but the return needs to be reviewed to ensure the refund/balance due in the return is the same that went up in the e-file.
    • 900 of these were rejected for IRS Reject FPY-089. Verify that you do not have any outstanding rejects.
      • This reject code occurred when the return calculated correctly and printed correctly for the taxpayer, however, SRP and/or excess APTC was excluded when the e-file was created.

Action: TaxSlayer developed a management report within the software titled “Problem Returns Report”.  (See attached instructions)  Sites can review this report to determine if there were returns prepared that may have the calculation errors.  Sites can then decide how they wish to handle those returns to provide any additional assistance to the taxpayer.

In the rare event, the calculation error results in a balance due for the taxpayer, TaxSlayer will be providing a letter that sites can share.  It can be used as an explanation to waive any interest and/or penalties associated with the balance due.

Contact:  We greatly apologize for any inconvenience this matter may have caused.   If you have any questions or need additional assistance, please contact any member of the TaxSlayer Transition Team.

 

Blog Posted 03/23/2017              6:10 AM

 

QSRA: Policy Update on Expired ITIN

Purpose:  Provide guidance on how to assist taxpayers with an expired ITIN that also have a requirement to file tax returns.

Click here to view PDF

 

 

New IRA Self-Certification Procedure

Revenue Procedure 2016-47 provides a taxpayers the ability to make a written certification to a plan administrator or an IRA trustee that a contribution satisfies the conditions in Section 3.02 of this revenue procedure. This self-certification has the effects described in Section 3.04 of this revenue procedure.

Since this is an election the taxpayer must make to his/her administrator or trustee, this letter will not be available in the TaxSlayer software. Taxpayers may make the certification to a plan administrator or an IRA trustee by using the model letter located at:  https://www.irs.gov/irb/2016-37_IRB/ar09.html#d0e518.

A copy of the certification should be kept in the taxpayer’s files and be available if requested on audit.

Quality Alert Central

Quality Site Requirement Alerts (QSRA) and Volunteer Tax Alerts (VTA) will be posted to the Quality Alerts section.  This will allow you to have the most up to date communications from the IRS.